Even for e-mobility, LANXESS claims to have excellent upgrades for the car manufacturers.
Specialty chemicals company LANXESS is planning to strengthen its business in India. In a rare occurrence where the LANXESS global board members were also present, the company announced investment plans worth Rs 1,250 crore for the next five years till 2023.One of the primary focus areas of the investment will be the businesses for chemical intermediates and high-performance plastics in mobility and the automotive industry. LANXESS has already invested a sizeable amount in India over the years, among others, for greenfield investments and acquisitions.
The company currently operates production facilities for five business units at its sites in Jhagadia in Gujarat and Nagda in Madhya Pradesh. LANXESS has production facilities for the business unit of Liquid Purification Technology (LPT), material protection products, among others, operational out of the Jhagadia facility in Gujarat. Out of the 10 business units of LANXESS, the company also locally manufactures for five of them in India today.
LANXESS offers solutions for those areas which the company believes are of highest interest for India. “Talking about mobility, regarding our high performance plastics, which has a manufacturing facility here at Jhagadia site, we are offering lightweight solutions for our car manufacturers,” informed Dr. Rainier van Roessel, LANXESS AG Board of Management.
Even for e-mobility, LANXESS claims to have excellent upgrades for the car manufacturers. “The tyre industry is growing fast in India and there is a high demand for it. More and more companies are setting sites for tyres, and for those companies, we have the ideal portfolio of additives. Lastly, leather chemicals also have manufacturing sites in India, and we have offerings of environment-friendly leather treatment,” he added.
Since it has been incorporated into India in 2004, LANXESS has steadily grown its business in terms of asset base and turnover. In the last ten years, sales in India have more than doubled from Rs 1,008 crore to Rs 2,608 crore. 2018 has also been a good year so far for LANXESS India. The turnover increased by 14 per cent in the first nine months compared to the same period last year.
“The Indian economy is currently the world’s fastest rising major economy, with the chemical industry as one of the fastest growing sectors. We aim to even capitalise the huge potential of the Indian chemical market and are therefore now launching a major investment package,” said Hubert Fink, Member of the Board of Management of LANXESS AG.
“The demographic trend in India is leading to an increased demand in the areas of mobility, urbanisation, nutrition and clean water. LANXESS can cater to these demands with its wide portfolio of specialty chemicals,” said Neelanjan Banerjee, Managing Director and Country Speaker, LANXESS India.
LANXESS now concentrates on high margin specialty chemicals, focusing on mid-size markets. “We have a clear ambition to be in each and every one of these mid-size markets. The areas in which LANXESS supplies products are tyres and automotive, chemicals, consumer goods, construction, agro-chemical among others,” said Dr. Hubert Fink, LANXESS AG Board of Management. LANXESS’ overall portfolio today is much more balanced and with that they see their business profile to be much more profitable than before.
LANXESS has changed its structure and divided its focus on four regions, out of which one specific region is India. “We have reserved money for growth in India and Mr. Banerjee is working on projects to be conducted in the next years to further broaden our asset platform here in India,” revealed Dr. Rainier.
In the area of sustainability, Banerjee said, “A greenfield site has been built to our standards, but also in our acquired site we have reinvested significant amount of money.”
Among the products supplied by LANXESS are high-performance plastics, thermoplastic polyester, rubber, glass fibres, flame retardants among others for the automotive industry.